This study examines the institutional mechanisms employed in post-disaster reconstruction programs in India after three major disasters occurring between 1993 and 2004 in three provinces—Gujarat, Maharashtra and Tamil Nadu. Extra-Ordinary Mechanisms (EOM) are usually set up in the aftermath of disasters to coordinate and speed up reconstruction process. There are many examples of EOMs that played a key role in successful reconstruction. But, only a few of them have survived as successful institutions for long-term disaster risk reduction. Several factors such as political will, availability of resources, requirements of international financial institutions, nature of bureaucratic and political leadership determine the nature and mandate of the EOMs. Based on the Indian experience, this study analyzes the challenges of sustaining the institutional arrangements for disaster management and makes an attempt to postulate the key elements needed for their effectiveness.